PEPSI-COLA Jamaica Bottling Company Limited is nearing completion of its new corporate offices and warehouse building at Spanish Town Road in Kingston.Pepsi Jamaica purchased the portfolio of soft drink brands formerly owned by Desnoes and Geddes including Pepsi, 7Up, D&G flavours, Old Jamaican Ginger Beer, and Ting, in December of 1999. Included in that purchase were approximately 10 acres of land that included the existing soft drink manufacturing facilities. Pepsi Jamaica now operates manufacturing, warehousing, delivery, and executive offices at the back of the Desnoes and Geddes property at 214 Spanish Town Road.
Institutional Reform
Pepsi Jamaica president Larry Flood, said, "To date, we have invested over US$3 million into the operation since the purchase."
"These expenditures include over US$1.5 million in plant and building enhancements, over US$500,000 in cooler investments, and over US$1 million in motor vehicles."
"The positive impact of these investments is already being felt", Flood continued. "Plant productivity has increased by nearly 50 per cent in the last several months due to the combined impact of capital improvements and the hard work of our staff. And the impact of closed bay delivery trucks in the Kingston area has definitely improved product quality. We now anxiously await the finalisation of our warehouse/office complex, to complete our major capital projects for the year."
In commenting on the competitive environment the company has encountered since its inception, Flood spoke to competitive forces as a major factor in driving the "thirst" for efficiency. "It should not come as a surprise to anyone that soft drinks have become one of the most aggressively competitive industries in Jamaica. In the last five years, the entire competitive landscape has changed. Package preference by the public has rapidly flipped from glass to plastic.
"Bigga and Coke are now entrenched local entities, while the importation of non-alcoholic beverages grows seemingly each day from the U.S. and Trinidad.
"This increased competition has driven the industry to significant growth over the past several years via providing customers and consumers with a greater variety to choose from, and generally at a lower price.
"Lower prices have put the squeeze on margins, and as a result, the entire industry has to become more efficient at what we do. High volume with low margins is a common theme in our industry worldwide, so we can't afford to get sloppy."
Mr. Flood said, "I'm proud of the work our people have done so far in transitioning our business into a more efficient entity. I'm excited about the growth in our employment levels. We now have roughly 250 direct employees with a bright future ahead of them. Further, we indirectly employ nearly that many again through our hard-working distributor and merchandising contractors.
"Another bright spot is the introduction and public reception to some new brands and packages - 7Up coming back into the glass package was long overdue, and the extension of Diet Pepsi into the 20-ounce plastic came about via demand from the public.
"But the real hit of the year for us has been the extension of Jamaica's own Ting brand into the 20-ounce plastic package. Ting 20-ounce has been a tough one to keep up with as demand has sometimes exceeded supply, but we've caught up now and hope to keep this ball rolling. We hope to have a similar volume reaction as we introduce it to the export market."
